What Does MSRP Mean?
When you’re shopping for a new car or used RAM 1500, or see advertisements for them on TV in Conway, you definitely come across the acronym MSRP. What does MSRP mean? It stands for Manufacturer’s Suggested Retail Price, and it’s just that — the price the manufacturer has suggested that dealers like Myrtle Beach Chrysler Jeep sell their cars. It’s also known as the list price, and it’s based on several factors: a model’s popularity, the labor and materials needed to make it, and much more. When you know what MSRP means, you’re closer to knowing how to negotiate a great price on a new car.
What is MSRP?
Most North Myrtle Beach drivers will only see the term MSRP when they’re shopping for a new car. You’ll hear it with similar terms like base price, invoice price, and transaction price. These terms all play a part in determining how much a shopper actually pays for a new car. In terms of all these terms, what does MSRP mean?
- It’s the price you’ll see on the same make and model at every dealership.
- SUVs will have a different MSRP than a sedan or a truck.
- Car shoppers can find the MSRP on the manufacturer’s website or the dealer’s website, or the window sticker on a new car. They can use it when negotiating the price of their new vehicle.
How is the MSRP Set?
There are multiple factors that determine the MSRP. They include:
- Manufacturing costs
- Sales processes
- Average markups based on live and historical data from dealerships
- The MSRP sets a vehicle’s base price at its entry-level configuration without additional features or accessories.
- Additional features and higher trim levels will raise the cost of the vehicle
While the MSRP is recommended, it’s not necessarily the price you’re going to pay. The dealership paid the invoice price to add the car to their inventory, and they can determine the actual asking price for the vehicle. This can depend on demand or overstocks which are more likely to be priced at a discount. This also gives Surfside Beach shoppers room to negotiate.
Get a Great Price on Your Next Vehicle at Myrtle Beach Chrysler Jeep
A fair price is one that leaves both the buyer and the dealer satisfied with the transaction. What is MSRP — it’s a suggested price, and like all suggestions, it can be negotiated. Get a great price that everyone will love at Myrtle Beach Chrysler Jeep when you shop our new vehicle specials. Or, contact our finance department and discuss your budget and car needs. Check out our car-buying tips for more helpful information on how to make car-buying a breeze!
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